Project , Progress Week 3 - Research Paper Example

Cash Flow Position and PESTLE Cash Flow Position and PESTLE Cash Flow Position Yahoo! Inc. cash flow position has been evaluated over the last 5 years from 2005 to 2009. The data collected clearly indicates the company’s net cash flow position has declined significantly over the years i.e. by 268%. The company’s overall cash flow position along with net cash flow from its operations, investments, and financing activities are depicted in tabular form and graphically as follows.   2005 2006 2007 2008 2009 Net cash provided by operating activities 1,711,383 1,371,576 1,918,899 1,880,241 1,310,346 Net cash used in investing activities -821,930 -193,681 -572,502 -1,311,783 -2,419,238 Net cash used in financing activities -250,600 -1,094,624 -1,442,008 332,406 34,597 Net change in cash and cash equivalents 605,970 140,178 -55,941 778,366 -1,016,866 From the above table, it could be observed that the company is generating healthy cash flows from its operating activities.

In the last year, the company has generated $605mn profits and it has also managed to achieve greater operational efficiency. Upon examination of the company’s investment activities, over the last years it could be observed that the company has made significant investments in long term marketable securities, other businesses such as Alibaba.com, Maktoob, Maven etc., and also has entered into new business arrangements to improve its customer approach and seek more opportunities for its internet information services and marketing offerings (Yahoo!, 2009). The outcome of these decisions could yield positive financial results for the company in the future.

Further analysis of the company’s free cash flow position indicates that the company has a positive FCF over the last five years, and implies that despite the company has been investing significantly over the years yet it has generated sufficient cash which is available for further business improvement or investment decisions. The following table and graph represent FCF over the last five years from 2005 to 2009.   2005 2006 2007 2008 2009 Free Cash Flow ($ ‘000s) 1,890,323 587,881 357,000 142,620 825,012 Useful Articles related to Yahoo!

PESTLE Political Yahoo! Inc. being an international entity is faced with numerous political factors that could severely affect its operations in the internet information services industry. Surya Deva (2008) in her article dealt with issues arising from the internet censorship implemented by the government of China and other regulatory bodies over the information that could be accessed for search engines including Yahoo!. The concerns over privacy rights in China have raised doubts about the future of companies like Yahoo!

which entered the Chinese market in 1999 and has made significant investment in local Chinese businesses. Strict interventions by the country’s regulatory bodies make it difficult for companies like Yahoo! to take on a proactive role to protect private information of its customers who are logging onto its system for information sharing (Deva, 2008). Social Social trends clearly suggest that consumers are increasingly inclined towards use of internet for not only sharing information but also to access ways of carrying out their purchases and carryout other social activities.

Companies including Yahoo! are continuously under pressure to innovate and develop new technologies for competing in the industry which is characterized as non-stationery. In its recent attempts, Yahoo! has entered into local deals with companies to ensure that its customer can have access to great deals regardless of their location. This is surely going to be a major determinant for retaining its customer base (Anonymous, 2010). Furthermore, Yahoo! is working with TV programmers to develop TV apps which would its millions of customers to access a wide variety of channels via continuous streaming accessible on their internet devices ( Anonymous, 2011) References Anonymous.

(2011, January 22). Yahoo! Demonstrates the Future of Television with Leading Tv Networks and Advertisers at Ces. Marketing Weekly News , p. 1166. Anonymous. (2010, December 4). Yahoo! Launches Comprehensive Local Offers Program. Marketing Weekly News , p. 3798. Deva, S. (2008). "Yahoo! For good" and the right to privacy of internet users: a critique. Journal of Internet Law , 11 (9), 3-8. Yahoo! (2009). Yahoo! Annual Report 2009. Sunnyvale, CA: Yahoo! Inc.